What are the Advantages of a Private Limited
Company Registration?
Limited Liability
Protection of Personal Assets
A private limited company ensures that shareholders have limited liability. This means their personal assets are safeguarded against any debts or losses incurred by the business.
Investment Protection
Shareholders are only responsible for the company's liabilities up to the amount they have invested, providing a critical safety net for individuals.
Risk Management
This is a key advantage of a private limited company, as it allows shareholders to invest in a business without risking their personal assets.
Separate Legal Entity
Independent Legal Status
A private limited company is recognized as a distinct legal entity separate from its shareholders and directors.
Business Operations
This separation allows the company to own assets, enter into contracts, and conduct business in its own name.
Opportunities for Raising Capital
Funding Options
Private limited companies have greater flexibility in raising capital through various means, including issuing shares to new investors.
Financial Growth
Companies can secure business loans or explore venture capital opportunities for expansion and development.
Credibility and Trustworthiness
Professional Image
The 'Private Limited' status adds credibility to your business, making it more attractive to potential clients and partners.
Business Reliability
It demonstrates a commitment to professional business practices and regulatory compliance, building trust with stakeholders.
Perpetual Succession
Business Continuity
A private limited company enjoys perpetual succession, meaning it continues to exist regardless of changes in ownership or management.
Long-term Stability
This ensures business continuity and provides a stable foundation for long-term growth and success.
Documents Required For Private Limited Company Registration
Identity & Address Proof
For the Registered Office:
- •PAN Card & Aadhaar Card (Mandatory for Indian Nationals).
- •Voter ID/Driving License/Passport (Mandatory for Foreign Nationals), Email Address & Contact Number
- •Recent utility bills (electricity, telephone, water, or gas) not older than 3 months.
Passport-sized Photograph
For the Registered Office:
- •Utility bill (electricity, water, or gas) with the registered office address.
- •Tax paid receipt/Electricity bill/ Gas bill along with a NOC (if owned property)
- •Latest electricity bill/ Gas Bill Copy with an NOC from property owner (if rented)
How to Register a Private Limited Company in India
Step-by-Step Guide
Compliance After Registration of Pvt. Ltd. Company
Maintaining compliance is crucial for Private Limited Companies to ensure legal adherence and avoid penalties. Here's a detailed breakdown of the key compliance tasks:
Annual Filings with the Ministry of Corporate Affairs (MCA)
Every Private Limited Company must file financial statements with the MCA to maintain accountability. The two main forms to be filed are:
Form AOC-4: Required to file the company's financial statements including balance sheet and profit & loss account. It must be certified by a Chartered Accountant (CA) or Company Secretary (CS).
The due date is typically within 30 days of the Annual General Meeting (AGM).
Form MGT-7: Required for filing the company's annual return, which contains details of directors, shareholders, and other statutory information. It must be filed within 60 days of the AGM. Annual filings require certification throughout the financial year and must be submitted by the deadline to avoid late fees and penalties.
Income Tax Return Filing
Filing Income Tax Returns is mandatory for all Private Limited Companies, regardless of profit or loss.
Due Date: September 30th of every year for companies not requiring tax audit.
GST Returns
If registered under GST, companies must file periodic returns showing all sales and purchases.
Monthly/Quarterly: GSTR-1 and GSTR-3B must be filed regularly.
Board Meetings
Companies must conduct regular board meetings as per Companies Act, 2013.
Requirement: Minimum of four board meetings annually, with gap not exceeding 120 days.
Annual General Meeting
An AGM must be held every year to discuss company affairs with shareholders.
Timeline: Within 6 months from the end of the financial year.
Why Choose RegisterKaro For Pvt. Ltd. Company Registration in India?
With RegisterKaro, you can leave all the complexities to the professionals and focus on setting up your company. You will get:
Our professionals handle the entire process, ensuring accuracy and compliance.
No hidden charges; everything is upfront.
Get your Private Limited Company registered in 7-10 working days.
Inclusive ongoing assistance for compliance and filings.